(Reopens DEL 49)

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PTI

June 24, 2016

UPDATED: June 24, 2016 18:05 IST

Trying to allay concerns over rupee depreciation, Subramanian said India has the ability "to shape how much and where we want to keep the rupee and how stable we want it to be. Of course, without totally interfering with market forces or impeding market forces. But we have the ability and wherewithal to ensure whatever adjustment takes place is orderly and smooth."

Stating that the government and RBI have been working on possible eventualities over the last several weeks, Economic Affairs Secretary Shaktikanta Das cited Indias domestic fundamentals as the reason the country will not suffer from any long-term impact of Brexit.

With comfortable foreign exchange reserves, inflation coming down and structural reforms on path, India will be able to deal with all eventualities, he said.

The government, he said, was "prepared for all eventualities."

"As far the as the stock markets are concerned it is initial spontaneous kind of sudden reaction because something which is happening goes beyond their expectation. This is a instant reaction that they have shown.

This reaction over the next few days I think should stabilise and markets hopefully will improve," he said.

Das, who did not travel to Beijing to overseas reaction to Brexit leading to postponement of India-China financial dialogue to July, said the depreciation of the Indian rupee was in line with other Asian currencies.

"You know the pound sterling have been depreciating so all currencies have been depreciating," he said.

The Finance Ministry and RBI "have been working on this and we have discussed all possible eventualities, outcomes of the Brexit over the last several weeks. We are prepared to deal with the situation that is emerging today," he said.

With USD 360 billion in foreign exchange reserve with RBI, Indias position "is very sound and solid".

"We have enough firepower to deal with the situation. And the fire-power will be used judiciously in a manner that we maintain stability if our economy," he said.

While Finance Secretary Ashok Lavasa said the government and RBI are ready with measures to curb volatility, Banking Secretary Anjuly Duggal stated that Brexit will not impact India in medium or long term. PTI JD DP HV CS ANZ SA

This is unedited, unformatted feed from the Press Trust of India wire.

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